Disability Income Insurance

How Much Do You Need?

According to the LIFE Foundation, one in seven workers will suffer a disability lasting five years or more before retirement.

If you were to become disabled due to an illness or injury, how would your cash
flow be affected? Would you have enough income to meet monthly expenses? This calculator
can help you estimate your need for income protection in the event you become disabled.

According to CNNMoney, nine out of 10 disabilities are caused by common illnesses and health conditions such as back problems rather than by injuries.

Based on the information you provided, the amount of income shortfall you might experience during a long-term disability is shown below.

Your Results

Your current monthly expenses:

$0

Additional monthly expenses if you were disabled:

$0

Your estimated total monthly expenses:

$0

Your estimated monthly income during an extended disability:

$0

Monthly funds available from other/retirement assets:

$0

Your estimated additional monthly income needed:

$0

The percentage of estimated total monthly expenses that you would need to replace
in the event of a long-term disability:

0%

Long-term disability (LTD) benefits are taxable when the employer pays the premiums, reducing an already limited benefit. In addition, employer provided LTD, even if employee paid, may not be portable. Disability income insurance coverage is generally limited to 60 percent to 70 percent of salary and typically has a monthly cap. Income may not be fully covered due to the cap. Bonuses are not counted as covered income by most LTD policies.

Income may be available from the following sources, but only for a limited time:

Accumulated sick-pay benefits.

Salary continuation benefits.

Short-term disability benefits (typically one year or less, limited amount).

This chart shows the percentage of your monthly expenses that you may need to replace
in the event of a long-term disability. A disability income insurance policy is
one tool you may want to consider to help you address this potential shortfall.
Social Security pays disability benefits, but you must be considered totally disabled,
and it can be difficult to qualify for benefits.

Total Monthly Expenses

This hypothetical example is used for illustrative purposes only. Actual results will vary.

The information in this calculator is not intended as tax or legal advice, and it
may not be relied on for the purpose of avoiding any federal tax penalties. You
are encouraged to seek tax or legal advice from an independent professional advisor.
The content is derived from sources believed to be accurate. Neither the information
presented nor any opinion expressed constitutes a solicitation for the purchase
or sale of any security.

IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.